Schedule 3 - Terms Pertaining to APFTQ Members Only

Terms Pertaining to APFTQ Members OnlyLETTER OF AGREEMENT BETWEEN THE APFTQ AND THE WGC WITH RESPECT TO HARMONIZATION ISSUES

WHEREAS, as agreed to in the Memorandum of Settlement entered into between the APFTQ, the CFTPA and the WGC on June 26 and 27, 2006, the parties have harmonized the Animation Sections of the 2003-2005 APFTQ/WGC IPA and the 2003-2005 CFTPA/WGC IPA into one national agreement;

WHEREAS, certain provisions of the 2003-2005 APFTQ/WGC Animation Section could not be merged into the national agreement since they resulted from specific negotiations between the APFTQ and the WGC;

NOW, THEREFORE, the APFTQ and the WGC agree as follows:

The provisions of the 2003-2005 APFTQ/WGC Animation Section outlined below shall continue to apply to APFTQ members only:

Bibles and Development Material

The Animation Section does not apply to an Animation Writer when writing a Development Proposal, concept and/or Bible, unless the Producer and the Writer agree that such writing shall fall under this Animation Section.

Bible means a written guide for an Animation Series describing the central premise, story and characters, the setting, format, genre, style, themes and continuing elements. It may include detailed characterizations and describe the interplay among the principal and recurring characters. Character and story arcs, story line and dialogue examples and production requirements may also be included.

Concept means the written presentation of an idea for an Animation Production describing the central premise, characters, setting and format. It shall also include a working title and date of submission. A Concept need not exceed 1250 words (five (5) pages double-spaced).

Development Proposal means the written presentation of an idea for an Animation Production consisting of the basic story elements and general descriptions of the principal characters. A Development Proposal need not include a scene-by-scene breakdown (see Treatment or Outline) and need not exceed 2500 words (ten [10] pages double-spaced).

Rights

Notwithstanding the licence set forth in Article 802, the Writer hereby reserves the right to collect from SACD, SCAM, or any other collective society representing such Writer, copyright royalties that may be payable to such Writer that derive from communications to the public by telecommunication of the Animation Production in Canada, France, Belgium, Switzerland, Monaco, Luxembourg, Bulgaria, or Spain, under agreements that have been or may be entered into between such collective societies and third parties. Accordingly, it is understood that, in said countries, the Producer shall have the duty to remind the broadcasters with whom it contracts directly that any obligation the television broadcasters have undertaken with the Producer shall not release them from obligations they have contracted or may contract with SACD, SCAM, or any collective societies representing them.

Furthermore, the Producer and Writer acknowledge that they are both entitled to an equitable share of the royalties collected for any retransmission of the production.

IN WITNESS WHEREOF, the parties have caused this Letter of Agreement to be executed this 19th day of November, 2006.